“EXITS + MODEL + ZEBRAS + PORTFOLIO + DEALS” — In 4 Minutes (or Less)
1. We're starting a startup — that starts up other startups — and we bring them EXITS. We are venture builders.
Just us three — for now.
2. For the last 20 years, we invested in startups and we built startups from scratch — a few times in fact — right here in the Valley.
3. We believe there's a repeatable MODEL. One that returns money back to investors — consistently.
4. Cisco has uncovered a model where they help build new startups, they help get them traction, and they spin them back within just a few years.
So we study 3 examples closely to hunt for clues.
5. The first clue — Andiamo — means: "let's go".
6. This second clue is easy. Nuova means: "new".
7. The final clue — Insieme — means: "together".
8. When the clues are put together, they say: "Let's go make something new then get back together!" — the very definition of "spin-in".
We see the same cast of characters — so we know it is a repeatable process. That inspired us to think about — "two-bit ventures".
9. For the rest of the Fortune 500 — we are creating a repeatable MODEL. One that works consistently for acquirers of startups — across all industries.
10. We happen to know where to find one missing piece of the jigsaw puzzle — through our venture partners at one of the "Big 3" consulting firms.
11. New venture creation takes many forms — garage startups happen to be one that people are already familiar. Think of the garage as a homegrown studio that builds one startup at a time. Some may try for unicorns — but produce only a string of ponies. Garage studios work fine whether for first-time entrepreneurs, or serial entrepreneurs.
12. For PORTFOLIO builders, however, a venture studio allows experiments to be run in parallel and/or pipeline stages — overseen by operating partners. Some studios grow "cash cows". We raise ZEBRAS.
13. A zebra takes no more than four million dollars to build — be ready in less than two years — for sale at fair market price.
A dazzle of zebras would occupy a "four-by-two" design space in the lower left quadrant — basically two-bit ventures by a different name.
14. Take a look at this picture of a startup ecosystem. See the problem we're trying to solve here?
That final cycle of capital flow is broken — so there is no money going back to investors — the LPs of venture capital funds. We fix where it's broken — with a dazzle of zebras!
15. The market always has ONE clearing price for zebras — every last one of them. Because — unlike other forms of startups — zebras are designed from Day One to take liquidity risk out of the equation.
16. We make DEALS people want — just because we can do deals that startup founders can’t. We bring liquidity back to investors. So they can replenish their funds and make new investments.
17. We won't catch one single unicorn even if we build two hundred startups. We like zebras more. Zebras can fix liquidity problems — they are more magical than mythical.
18. 20 zebras — all custom built for "market matching" — is the closest to a sure thing if there ever was one. That's how we construct a diversified PORTFOLIO.
Our zebras can pirouette in the corporate "spin-in" segment — where prancing ponies don't get invited to dance.
19. It's the razzle-dazzle — you see — that underlies all that spinning. Cisco has shown us the way.
20. We are raising 20 zebras over the next 5 years — for a dazzling PORTFOLIO — starting 2020. We've got a treasure map!
21. That means 20 EXITS — we leave no zebra behind. Unicorns get a free ride. They play nice together.
22. We create a new "zebra class” asset for old-time investors — one that offers attractive returns at low risk — plus "design-in liquidity" from Day One. Interested?
23. We’re Two Bit Ventures. We make DEALS people want.